GoPro Market Share Expansion Will Continue, Piper Jaffray Says

Piper Jaffray said in a note this morning that GoPro Inc GPRO is a "undervalued, high-growth consumer brand with an opportunity to meaningfully expand its market share with time." As such, the analysts forecasted that the stock would gain to $55 per share, 23 percent upside from Friday's closing price.

The company will benefit from "early stage of customer adoption through accelerating product sales," according to the note. Piper Jaffray estimated that GoPro's total addressable market will grow by 22 percent through 2019, reaching 9 million units in 2018. The company, Piper Jaffray said, will reach annual sales of 10 million over time, nearly double current sales.

Additionally, with time, monetization of content will become "clearer." For example, the analysts pointed to GoPro's live point-of-view footage of the NHL All-Star Weekend and the X Games as ways the company can expand the "realm of broadcast possibilities for TV networks."

At the current price, GoPro's valuation is "compelling," the analysts said. While the firm modeled sales and EPS in line with Street estimates, they said that they are looking for outperformance, particularly into the second half of 2015. That growth will be led by stronger-than-expected upgrades, momentum in Europe and Asia, and the ongoing strength of the HERO within the consumer market.

GoPro is flat on the session, trading at $44.60. This year, shares have sank 29 percent. Over the past 52 weeks, however, shares have performed well, gaining 43 percent.